Area: Okolje in prostor
Competent authority: MF, MKGP
EZU URL: .nan
Initiative ID: 1069
Initiative accepted and completed: '2020-10-30'
Initiative classified in EZU: .nan
Initiative forwarded in response: '2020-10-13'
Initiative published: '2020-10-13'
Initiative submitted: '2020-10-13'
Response from the competent authority: Reply from the Ministry of Finance:With regard
  to the petition, which states that the transfer of land in the context of commutation
  proceedings does not involve a turnover of immovable property or an acquisition,
  and therefore proposes to exempt capital gains made on the transfer of land in the
  context of commutation proceedings from income tax under the Income Tax Act or to
  change the practice of the tax authority in these proceedings, the Ministry of Finance
  explains:As a preliminary point, we would like to state that, in accordance with
  the Agricultural Land Act (Official Gazette of the Republic of Slovenia, No.1 of
  19.12.2008, No. 59/96 et seq.), a type of agrarian operation whereby agricultural
  land or agricultural space is improved for the purpose of improving agricultural
  land or improving cultivation conditions. To this end, the land of individual owners
  in a given area is stacked and redistributed among the previous owners so as to
  give each as rounded a plot of land as possible, approximately equal in total value.
  The consolidation of fragmented ownership makes it easier and more economical to
  use the land, thereby increasing the utility and value of the land itself. In connection
  with the initiative, we would like to clarify that the Act on the Tax on the Turnover
  of Immovable Property (Official Gazette of the Republic of Slovenia, No 117/06 et
  seq.; hereinafter referred to as the "ITA-2") imposes a tax on the turnover of immovable
  property and certain rights in rem. The concept of turnover of immovable property
  covers, in accordance with the first indent of Article 3(3) of the ZDPN-2, exchanges
  of one immovable property for another. This means that transfers of land in the
  context of land consolidations carried out in accordance with the regulations on
  spatial planning and transfers of agricultural land in the context of other agrarian
  operations in accordance with the regulations on agricultural land are also transfers
  of immovable property. However, the legislator has exempted such land transfers
  from the payment of the said tax on the basis of Article 10, fourth indent, of the
  Land Transfer Tax Act.According to the Income Tax Act (Official Gazette of the Republic
  of Slovenia, No 117/06 et seq.; hereinafter referred to as the "ZDoh-2"), a capital
  gain is a gain realised on the disposal of capital, whereby, in accordance with
  Article 94 of the ZDoh-2, a disposal of capital is deemed to be, inter alia, a capital
  swap. The transfer of land in the context of land consolidation also constitutes
  an exchange of capital. In the case of commutation, new independent land parcels
  are created as the boundaries of the existing land parcels are changed. This means
  that the individual owner acquires a new parcel of land in the exchange.As with
  other taxable exchanges of capital, it is not essential in the case of capital exchanges
  in the context of land consolidation that the size and value of the individual owner's
  capital is preserved. From the point of view of taxation under Chapter 6.3 Capital
  Gains of ZDoh-2, it is essential that in the case of a commutation, the individual
  owner acquires new capital through a commutation swap, namely a new parcel of land
  that he did not own before. As this is new capital, it is treated separately and
  independently from the capital that was the subject of the exchange. In this way,
  the principle of equal tax treatment is ensured in the taxation of transfers of
  land parcels in the context of commutations, since individuals who are in substantially
  the same situation are treated in substantially the same way. The same tax treatment
  is given to individuals who exchange land parcels in the context of commutation
  proceedings and to individuals who exchange their real estate for another purpose.The
  time of acquisition of the newly acquired land parcels is determined in accordance
  with Article 101(1) ZDoh-2, according to which the time of acquisition of capital
  is the date of conclusion of the contract or other legal transaction, or the date
  of the entry into force of the court decision or the finality of the decision of
  the administrative authority, on the basis of which a natural person has acquired
  the capital. In the case of contractual land consolidation, pursuant to Article
  56 of the Law on Real Estate Registration (Official Gazette of the Republic of Slovenia,
  No 47/06 et seq.; hereinafter referred to as 'the Law on Real Estate Registration'),
  the time of acquisition shall be deemed to be the final decision on the registration
  of the contractual land consolidation or, in the case of administrative land consolidation,
  pursuant to Article 59 of the Law on Real Estate Registration (hereinafter referred
  to as 'the Law on Real Estate Registration'), the final decision on the registration
  of administrative land consolidation.
Text file: 1069.txt
Title: Nonsense - Tax Office - capital gains tax on disposal of immovable property
URL: https://www.stopbirokraciji.gov.si/pobuda/?st=1069
